JSW Steel, Hindalco, Tata Power down on coalblock deallocation

MUMBAI: Shares of JSW Steel, Hindalco and Tata Power today tanked on the BSE following the government move to deallocate one more coal mine, and deduct bank guarantees in the case of two companies.

The government yesterday decided to deallocate the Gourangdih ABC coal block, given jointly to JSW Steel and Himachal EMTA in 2009, and deduct bank guarantee of mine given to Hindalco, Tata Power.

Shares of JSW Steel opened at Rs 717.90, then tumbled 3.76 per cent to an early low of Rs 697. It was later trading at Rs 718, still lower by 0.87 per cent from yesterday's close on the BSE.

The IMG panel decided to recommend deduction of bank guarantee in the case of a mine jointly allotted to Aditya Birla Group's flagship firm Hindalco and Tata Power due to delays in development of the block.

Shares of Hindalco Industries today opened weak and then fell 2.13 per cent to an early low of Rs 114.75 on the BSE. It was later trading at Rs 115.25, down 1.71 per cent at 11.01 hours, from yesterday's close.

Stock of Tata Power also followed suit it fell 0.45 per cent to an early low of Rs 98.60. It was quoted at Rs 98.75, down by 0.30 per cent on the BSE at 11.20 hrs.

The total number of blocks approved for deallocation has gone up to five, out of total seven recommended by the IMG so far. Government has approved deducting bank guarantee (BG) in case of five mines out of total eight recommended by the IMG so far.